The state, however, did not meet its responsibility to make sure the money was properly spent, the federal audit found.

The federal audit does not charge that any grant money was stolen.

That spending was sharply criticized in a federal audit last month.

But a federal audit released yesterday suggests that that is exactly what happened.

The Housing Authority, after a federal audit last year, was ranked as one of the most troubled in the nation.

The federal audit also reported about $165,000 of duplicate billing during the 1999-2000 school year, which district officials have promised to repay.

An continuing Federal audit of research spending has been complicated by the university's destruction of important documents.

The Supreme Court ruled that the nation's public universities must submit to federal audits.

Officials interfered with investigations into the program more than half a dozen times, the letter said, pressuring witnesses and sabotaging a Federal audit.

A federal audit found that the program had improperly spent money and had not properly accounted for its federal grants.